Economy set to expand
The economy is expected to grow 3.24 percent this year, followed by a 3.60 percent increase next year due to a stable domestic recovery, Chunghwa Institute for Economic Research said yesterday.
"With a mild recovery in domestic demands and a continued increase in exports, the nation's economic growth is expected to reach 3.24 percent this year, compared with a contraction of 2.18 percent last year," Wang Lee-rong (王儷容), director of the institute's Center for Economic Forecasting said yesterday at a press conference.
In its latest forecast, the government-funded think tank said Taiwan's economy will grow by 3.96 percent in the first quarter next year, followed by 3.12 percent, 3.5 percent and 3.81 percent in the succeeding quarters.
The nation's economy may grow 4.49 percent in 2004 because of recoveries in global economies, Wang said, citing potential risks such as a US-led war with Iraq and a dramatic change in the US economy.
Chinatrust to open in Beijing
Chinatrust Commercial Bank (中國信託銀行), Taiwan's largest credit card issuer, said it received approval from China's central bank to set up a representative office in Beijing.
The bank's China office will be led by Chung Min-min (鍾敏敏), Chinatrust said in a statement. Representative offices are allowed to gather information, negotiate with Chinese and Taiwanese businesses and officials and conduct market research.
Chinatrust joins Chang Hwa Commercial Bank (彰化銀行), United World Chinese Commercial Bank (世華銀行), Taiwan Cooperative Bank (合作金庫) and Hua Nan Commercial Bank (華南銀行), which have been cleared for Chinese offices since Taiwan said it would let lenders expand in China last year.
Poinsettias' market prices droop
The market prices of poinsettias, used by people to greet Christmas, have dropped by between 10 percent and 20 percent this year due to surplus supply, a local newspaper reported yesterday.
The paper suggested the prices of the cherry red plants may continue to go down today, the Christmas Eve, and consumers may have a great chance getting a good bargain. According to the statistics released by the Council of Agriculture, a total of 1.87 million poinsettia plants are produced this year, up from 1.66 million plants last year.
But the demand does not bounce back, prompting the prices to drop. Now on the market, a mini plant is sold between NT$30 and NT$40, while a big one might range from NT$60 to NT$150, according to the report.
Bonds fall on no rate cut news
Taiwan's local-currency bonds fell on fading expectations that the central bank will cut its key interest rate at its quarterly policy meeting on Dec. 26.
The central bank lowered its key rediscount rate to a record 1.625 percent on Nov. 11, in its 14th rate cut in almost two years as it tries to stimulate domestic demand. "We are expecting the central bank to keep interest rates unchanged," said Chung Shiang-chang, a bond trader at Fuh-hwa Investment Trust Co (復華投信).
New Taiwan dollar rises
The New Taiwan dollar yesterday traded higher against its US counterpart in line with a stronger yen. The local currency rose NT$0.035 to close at NT$34.818 on the Taipei foreign exchange market, after Japanese yen broke 120 psychological level against the greenback. But amid a thin trading ahead of Christmas Day, yesterday's turnover was US$244 million, compared with last Friday's US$267 million.
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